Shares of Tempus AI (TEM) are rising 5% in pre-market trading after surging 13% yesterday. The healthcare-focused AI stock shot to new heights in January following the disclosure that the former Speaker of the House of Representatives Nancy Pelosi had purchased call options. TEM stock has more than doubled since the trade was revealed.
Tempus announced yesterday that it was collaborating with the nonprofit Institute for Follicular Lymphoma Innovation to develop treatment options for patients with the disease.
The institute will use the AI shop’s data analytics platform Lens to "derive AI-driven insights to accelerate the development of FL treatments in an effort to improve patient outcomes." The aim is to create a centralized and dynamic data library that helps researchers better understand FL.
The follicular lymphoma treatment market is expected to grow from $2.77 billion in 2023 to nearly $4.65 billion by 2030.
Tempus AI rocketed to the forefront of investor interest after Pelosi disclosed she had bought 50 call options with a strike price of $20 that also expire on Jan. 16, 2026. The value of the trade was between $50,000 and $100,000.
The California congresswoman has an uncanny knack for making exceptionally profitable trades. According to the Unusual Whales site, Pelosi generated returns of 70.9% in 2024 compared to 24.9% for the S&P 500.
Politicians are not supposed to buy or sell stocks based on information they get from their oversight of the companies they regulate, but their portfolio performance tends to consistently handily outperform the returns of the broad market index.
Tempus AI is scheduled to report fourth quarter earnings on Feb. 24. The 12 analysts covering the healthcare-focus AI stock forecast it will lose $0.15 per share on $202.8 million in revenue.They have a one-year price target of $58.55 per share implying 30% downside risk.
TEM stock only went public in June 2024.
